Related questions
Question
In order to qualify as a
(A) Two or more with an interest of more than 5%.
(B) One partner with more than a 50% interest.
(C) Two or more with any amount of interest.
(D) Three or more.
Expert Solution
arrow_forward
Step 1: Define Partnership Interest:
A partnership interest describes an individual or entity's share of ownership in a partnership, which includes their rights to profits, losses, decision-making, and assets of the partnership. It represents the partner's financial and managerial stake in the business.
Step by stepSolved in 3 steps
Knowledge Booster
Similar questions
- Mr Anil, Mr Babloo and Ms Chetna wish to setup an export unit registered in India exporting Fast Moving Consumer Goods to Latin American Countries. They hired you as a consultant in Company affairs. Point out the process to establishing Company, what rights and privileges this company acquires after incorporationarrow_forwardI think it's the second one but I'm not sure.arrow_forwarddescribe a general partnership business venture that would be interested in becoming involved in. Indicate what would be certain to include in a written partnership agreement. Be specific as to how it would share profits and losses.arrow_forward
- . Discuss the relative advantages and disadvantages of operating a business as a Limited Liability Partnership (LLP) as opposed to a General Partnership.arrow_forwardCompanies A and B differ only in their capital structure. A is financed 30% debt and 70% equity: B is financed 10% debt and 90% equity. The debt of both companies is risk-free. a. Rosencrantz owns 1% of the common stock of A. What other investment package would produce identical cash flow for Rosencrantz? b. Guildenstern owns 2% of common stock of B. What other investment package would produce identical cash flows for Guildenstern?arrow_forwardhi can i get help with these please?arrow_forward
- the founder and chairman of the company is the same person. if he later sells the company and becomes executive director, will there be a conflict of interest? How could this be a corporate governance and ethics issue for the company and what steps/structures should be put in place to prevent this?arrow_forwardAnswer the following questions using 100 words or less. Each prompt is worth 5 points. Why are LLCs and partnerships attractive to businesspersons? Why might the members of an LLC prefer to put the terms of their operating agreement in writing? What is the difference between an LLC and a limited liability partnership (LLP)? Should fraud be required to pierce the veil of an LLC?arrow_forward1. Explain the all the forms of and the advantages and disadvantages of each form of business. Define each form of business, sole proprietor, partnership, LLC, LP, and Corp. Next for each form of business explain the advantage and disadvantage of that particular form of business, comparing that form to the other types discussed. 2. Explain which form you would want to use for your business. o Explain why.arrow_forward
- What is one of the primary roles that agency law plays in partnerships? Group of answer choices: A. Controls formation of the entity. B. Dictate how the partners can operate the business. C. Whether or not a partner can bind the partnership to obligations or liabilities. D. Dictates what the operating agreement must state..arrow_forwardSuppose you had inside information that your employer was thinking about declaring bankruptcy, and you find out that a family member was about to purchase $20,000 in the stock of your employer. To what extent would it be unethical for you to dissuade the family member from making the investment?arrow_forwardBailey is a limited partner in his company. A general partner in his company is going on an extended vacation and has asked Bailey to run the company while he is gone. If Bailey agrees to do so, he will no longer qualify as a limited partner. ( a) True b) Falsearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios